Car registrations saw an increase of 2.5% in July, while private sales decreased by a notable 11.1%

Record Breaking Car Sales in July 2024

In a remarkable turn of events, the automotive industry saw a significant surge in new car registrations in July 2024. The month marked the best July for car sales since 2020, with a 2.5% increase, totaling 178,420 units. This rise in sales continues the 41st consecutive month of growth in the industry.

The increase in sales, however, was not evenly distributed across all segments. Private sales, which accounted for 37.7% of the market in July, saw a decline of 11.1%, dropping to 36.2% of the market. This contrasts with the strong performance of fleet sales, which rose by 13%, accounting for 62.0% of the market.

The rise in new car registrations can be attributed to several factors. Low interest rates and car manufacturer incentives have been driving the rise in new car registrations for almost four years. These incentives have made owning a new car more accessible and affordable for many consumers.

The growth in new car registrations was not limited to traditional petrol and diesel cars. Sales of hybrid electric vehicles (HEVs) increased by 31.4%, while plug-in hybrid electric vehicles (PHEVs) saw a 12.4% increase in July 2024. Battery electric vehicles (BEVs) also experienced growth, with registrations increasing by 18.8%. Despite this growth, total BEV registrations are struggling to meet the 22% required to avoid fines, indicating a need for continued efforts to promote electric vehicle adoption.

The strong performance in July 2024 follows a similar trend seen in March 2024, when new car registrations reached their highest level since 2019, with a 10.4% rise in registrations to 317,786 units. This marks a continuation of the trend of new car registration rising after the fallout from Covid and War decimated car sales.

However, there are concerns about the weakening private retail demand for electric vehicles, despite manufacturer discounts. This is a significant development, as the shift towards electric vehicles is crucial for reducing carbon emissions and meeting environmental targets.

The best month for new car registrations in 2024 was August, with registrations reaching 207,229 vehicles, marking a 5% increase over August 2023. As the industry continues to recover and grow, it will be interesting to see if this trend continues in the coming months.

Car registrations saw an increase of 2.5% in July, while private sales decreased by a notable 11.1%